New State bank starts lending to SMEs

The Strategic Banking Corporation of Ireland (SBCI) today launched its initial product programme to provide E400 million of low-cost, long-term funding to Irish SMEs.
The first phase of SBCI measures includes new, SME-friendly loan products available from 9 March through AIB and Bank of Ireland which will act as On-Lenders of low-cost funding provided to them by the SBCI.
Using existing lenders for the first phase allows the SBCI to reach the widest range of SMEs as quickly as possible, it said.
Subsequent phases will see the SBCI supporting smaller existing bank and non-bank funding providers and bringing in new participants to the Irish market to act as On-Lenders, enabling them to compete and grow. The SBCI product range will also expand further to include more targeted funding solutions.
Today's SBCI product launch was attended by An Taoiseach; the Tanaiste, the Minister for Finance, and the Minister for Public Expenditure and Reform, Mr Brendan Howlin.
One of its first product offerings is the SBCI SME Investment and Working Capital Loan, which includes a discounted interest rate and loan amounts up to E5 million for between 2 and 10 years.
Facilities to Re-finance Exiting Banks: these are loans to refinance those SMEs whose current bank loan facilities originated with banks which are exiting the Irish market. Loans may also cover new lending for investment and working capital purposes.
SBCI Agriculture Investment Loan are available to support investment by agriculture SMEs involved in primary agriculture production, the processing of agriculture products or the marketing of agriculture products.
"The mission of the Strategic Banking Corporation of Ireland is aligned to that of Government. Providing more credit for businesses to grow and create more jobs is key to securing Irish recovery. More jobs fund better services, reduce taxes on those already at work and provide opportunities for people who have left Ireland to come home. Improving credit availability for business was a feature of discussions I had with Chancellor Merkel on ways to reinforce Ireland's economic recovery. As a result, KfW, the German development bank, was asked to work with the German and Irish authorities in order to deliver on funding to help create the SBCI," the Taoiseach said.
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